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South African Airways CEO Resigns: Lack Of Funding, No Government Support
South African Airways (SAA) has announced that its CEO, Vuyani Jarana, has stepped down due to lack of funding and a drop in government support for the turnaround plan of the ill-fated carrier. Jarana's tenure lasted only 18 months, offering strong promises to bring the carrier round to its first profits since 2011. He, like the SAA chairman Johannes Bheukmuzi Magwaza, has lambasted the government for the continued failures faced by the airline. In a letter seen by Bloomberg, he said that… (airwaysmag.com) Más...Sort type: [Top] [Newest]
The days of the National(ized) Airline are over.
No support? LOL. I suppose it is a feeble joke as the South African tax payers have been bailing out the national carrier again and again (which may oy may not be fine, depending upon one's political views). However staff at SAA are doing a fine job and deserve support. Let us remember how the French taxpayer has been supporting Air France (even bailing it out to the tune of what was then the deficit of Social Welfare), etc. It is not a particularly South African issue. As for the routes a strategic error was to believe that intra-African routes, especially West, would be lucrative. Another error (unless it was some sort of stitch-up) was to go into alliance with Lufthansa, and relinquish the Paris slots. But who can mention a national carrier that has not been subject to government desiderata, or made abysmal errors?
Government support of airlines rarely works. In the competitive commercial airline market, even private companies fail. Jet Airlines was the most recent failure. Anyone flying South African Airways should make sure they have travel interruption insurance.
Really? What about all Chinese airlines that are in fact State owned?
Not all Chinese airlines are state owned. China Southern, China Eastern and Air China are state owned however Hainan Airlines, Cathay Pacific, Spring Airlines and others are not. And Taiwan won't let China Airlines or Mandarin Airlines be bought.
By Chinese I meant "PRC".
Hainan Airlines, Spring Airlines and others are in PRC.
and you really believe they are not one way or another run by the State or the Communist Party ? Really?
The state is the "Party" and the "Party" wants no part of anyone outside China, in their controlled interest.